Calgary Herald

Flawed theories

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Re: “Canada shouldn’t fear nixing Nexen purchase,” Brian Lee Crowley, Opinion, Oct. 27.

I suspect that Brian Lee Crowley subscribes to the adage of “good in theory, but not in practice.”

This can only explain his theory that if not CNOOC, then somebody else will show up with bags of money to develop Nexen and other Canadian resource assets.

Here is where his theory fails in the lab of real life — nobody else has shown up to bid for Nexen. Nobody showed up before CNOOC; nobody showed up after CNOOC’s bid.

His other theory that the world is awash in capital is also sorely naive. It might do him some good to ask the thousands of resource companies listed on Canadian stock exchanges if they are rollicking in this tsunami of capital Crowley speaks of.

Nexen produces 70 per cent of its resources offshore and not in Canada.

The other 30 per cent is under the ground in Canada, and when produced, it attracts royalties and taxes. Theory three debunked; how can the tax revenue be lost to Canada?

Nexen oil and gas goes into a pipeline and is sold on the world market. China is likely currently an indirect buyer of Nexen’s resources, as are many other countries.

If Crowley has an issue with who is buying “Canadian” oil and gas, is he suggesting that the government restricts to whom and where Canadian companies can sell their resources?

Looks to me that Crowley is just another Ottawa navelgazer who lives in a textbook world. That’s my theory.

Darrin Hopkins, Calgary

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